Cablegate: Exbs: Ukraine Advisor Monthly Reporting Cable

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 05 KIEV 001082

SIPDIS

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL
SUBJECT: EXBS: Ukraine Advisor Monthly Reporting Cable
January - February 2006

I. RED FLAG ISSUES

1. On October 1, 2004, ExBS Advisor requested that the
Department of Homeland Security's Bureau of Customs and
Border Protection (CBP) de-obligate fiscal year 2004 ExBS
operational funds for use in fiscal year 2005. Despite
numerous written and oral requests since then, the funds
remain unavailable.

2. On June 13-17, 2005, CBP conducted International Border
Interdiction Training-2 in Odesa for 24 Ukrainian Customs
and Border Guard Officers. During the course of the class,
the students were to be provided with individual tool kits
that would help them in the training and in conducting
regular examinations of vehicles and cargo. Due to
inadequate numbers, the tool kits were not provided at the
time of the training. Eight months after the training, on
January 12, ExBS office was informed that tool kits were
received by CBP. ExBS awaits information from CBP on the
delivery of the toolkits to Kiev for distribution to the
appropriate recipients.

3. ExBS office awaits information from CBP on delivery of
approximately 200 individual tool kits, requested in 2004,
to be deployed at border crossings.

4. In November 2004, the State Customs Service of Ukraine
(SCSU) inquired about the status of a decision regarding
procedures for repairing malfunctioning equipment
(fiberscopes, radiation pagers and busters) provided by the
U.S. Government as technical assistance. SCSU provided
updated information on the U.S.-manufactured equipment,
which is currently non-operational and requires repair or
replacement, to ExBS. ExBS reiterates its request for
instructions on arranging for repair or replacement.

II. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS

Responsibility for border radiation control: There are
discussions under way in the Government of Ukraine (GOU)
regarding possible re-distribution of responsibilities for
primary radiation control at ports of entry. The State
Border Guard Service of Ukraine (SBGS), which was vested
with such responsibilities in 2005, approached the Cabinet
of Ministers of Ukraine with a request to give up
responsibility for primary radiological control at
Ukraine's borders. The SBGS proposed that the
responsibility be transferred to the State Customs Service
of Ukraine (SCSU). However, the Ministry of Environmental
Protection (MEP) does not support this proposal; MEP
suggests instead that all responsibilities related to
radiation control be returned to MEP, which had the
responsibility previously.

III. COMPLETED ACTIONS FOR THE REPORTING PERIOD

A. SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD

1. On January 19, an ExBS representative met with Brent
Eastman and Michael Stafford, U.S. Department of State
(DoS), who traveled to Ukraine to take part in a meeting of
the U.S.Ukraine Working Group for nuclear smuggling
issues. The focus of the January 20 U.S.Ukraine meeting
was to identify Ukraine's priority needs in the areas of
safeguarding nuclear materials and preventing nuclear
smuggling. ExBS briefed Stafford and Eastman on ExBS
activities in Ukraine. General information was provided on
the findings of border assessments conducted by the ExBS
office in 20042005 at ports of entry along Ukraine's
borders with Russia and Belarus.

2. On January 23, ExBS Advisor met with Volodymyr Yevseyev,
Chief of the Directorate for Ecological Control at the
State Border, MEP. ExBS had provided logistical support
for Mr. Yevseyev's trip to Bachivsk for replacement of the
control unit of the portal monitor. On October 12, the
ExBS Office had received notification from the MEP about a
failure of the stationary portal monitor control box
installed at Bachivsk port of entry. The information was
forwarded to the Department of Energy (DoE) for follow-up
action. On December 1, the Embassy's DoE attache received
the replacement control box; on January 27, the control
unit was replaced.
3. On January 23, ExBS Advisor met with World Bank
representative Mr. Zarnowiecki to discuss coordination of
efforts to provide technical assistance to the GOU. The
World Bank is implementing a project focused on Customs
reform. ExBS Advisor provided brief information on ExBS
activities as they relate to the SCSU.

4. On January 26, ExBS Advisor met with Andriy Laktionov,
Deputy Chief of the Department for International Technical
Assistance, Directorate for International Customs
Cooperation of the SCSU. ExBS Advisor updated Laktionov on
the status of delivery of 2 luggage-type X-ray units, 6
contraband detection kits, 160 radiation pagers, and 1130
individual tool kits purchased by the Department of State's
Bureau for International Security and Nonproliferation,
Office for Export Control Cooperation (ISN/ECC) through
SAIC. The appropriate steps to officially register the
project with the Ministry of Economy were also discussed.
ExBS Advisor informed the SCSU about DoE-proposed training
on the use of X-ray fluorescent metal analyzers on March
16-17. It is envisaged that two such units would be
transferred to the SCSU immediately upon completion of the
training.

5. On February 2, ExBS Advisor met with OSCE
representatives to discuss assistance provided to the SBGS.
OSCE is launching a project for Border Guard Service
reform, which will mainly focus on enhancing the capacities
of border guard units along Ukraine's southwestern border.
ExBS Advisor provided a brief introduction to ExBS
activities and how they relate to the SBGS. ExBS Advisor
made recommendations to OSCE on coordinating its efforts
with DoD's Proliferation Prevention Initiative (WMD-PPI).

6. On February 6, ExBS Advisor participated in the Embassy
Border Security meeting chaired by the Deputy Chief of
Mission (DCM). ExBS Advisor informed the participants of
the results of the January 30-February 1 Integrity
Awareness workshop held for SBGS officers and described the
planned delivery of equipment to the SCSU.

7. On February 8, ExBS Advisor met with Dmytro Zavtur, the
Chief of the Directorate for International Customs
Cooperation, SCSU, to give an update on the planned
delivery of equipment. ExBS Advisor proposed that the SCSU
consider the possibility of holding an official turnover
ceremony with the Ambassador and SCSU Chairman upon receipt
and installation of the X-ray units. ExBS Advisor also
informed Zavtur that, based on the results of the two
Integrity Awareness Workshops held in Ukraine in November
2005 and January 2006 and feedback from their participants,
ExBS had recommended that DoS consider conducting an
executive level Integrity Awareness Workshop at the end of
June 2006 for top management of the SCSU, the SBGS, the
State Service for Export Control (SSEC), the Security
Service of Ukraine (SBU), the Ministry of Interior (MOI),
the National Security and Defense Council (NSDC), and
Members of Parliament (MPs). DoS is currently studying
this issue, and once the decision is made, the ExBS office
will officially notify all the parties involved. Zavtur
thanked the U.S. for the assistance being provided and
requested U.S. Embassy support in SCSU efforts to obtain
the status of a law-enforcement agency. Zavtur suggested
that the SCSU is the only Customs agency in Europe which
does not have such status, which would grant it the ability
to conduct investigations and collect intelligence
information related to customs offences. The Customs Code
of Ukraine stipulates post-delivery audits; however
prevailing legislation does not provide for such authority.

8. On February 15, ExBS Advisor met with Andriy Laktionov,
Deputy Chief of SCSU's Unit for International Technical
Assistance programs, Directorate for International Customs
Cooperation, and Yuriy Drankovskyi, Senior Expert of the
Directorate for Coordination of International Technical
Assistance Projects of the Ministry of Economy, to discuss
the registration of the project which would supply
radiation pagers, contraband detection kits, individual
tool kits, and X-ray units to the SCSU.

9. On February 23, ExBS Advisor accompanied DoS Contracting
Officer Will Zehnder on a visit to the office of the Roma
Ltd. Company to award contract number SOUP300-06-M-0102 for
the supply of 334 computer workstations to the SCSU, with a
total value of $400,000.00.

10. On February 24, ExBS Advisor accompanied Zehnder on a
visit to the office of the BMS-Consulting Company to award
contract number SOUP300-06-M-0103 for the supply of
computer equipment to the SSEC, with a total value of
$17,298.40.

11. On February 28, ExBS Advisor participated in a meeting
with Zehnder and Director of the Roma Ltd. Company,
Volodymyr Zhuravlyov, to sign Modification No. 001 to
Contract No. SOUP300-06-M-0102 for an additional 100
computer workstations, with a total value of $120,000.00.

B. TRAINING CONDUCTED DURING REPORTING PERIOD

1. On January 30February 1, Commonwealth Trading Partners
Inc., contracted to ISN/ECC, conducted Integrity Awareness
Training for 29 Border Guard officers. Though the responses
and feedback were very positive, the general level of
cooperation on part of the trainees was noticeably lower
than during the previous Integrity Awareness Workshop
conducted in Kiev on November 16-18, 2005, for the officers
of the State Customs Service of Ukraine. The participants
pointed at differences in the legislative framework, which
in some cases becomes a serious impediment in applying
received knowledge and skills in practice.

C. EQUIPMENT DELIVERED DURING REPORTING PERIOD

1. On January 12, ExBS office received 160 radiation
detection pagers, which were purchased by Science
Applications International Corporation (SAIC) under a
contract with ISN/ECC. The equipment was ordered based on
the findings of the assessments conducted by the ExBS
Office in 2004/2005 and will be deployed at the ports of
entry along the Ukraine's borders with Russia and Belarus.
Total cost of the indicated equipment is $205,120.00. The
pagers were transferred to the State Customs Service of
Ukraine (SCSU) on February 15.

2. On January 20, ExBS office received 6 contraband
detection kits CT-30, which were purchased by SAIC under a
contract with ISN/ECC. The equipment was ordered based on
the findings of the assessments conducted by the ExBS
Office in 2004/2005, and will be deployed at the ports of
entry along the Ukraine's borders with Russia and Belarus.
Total cost of the indicated equipment is $87,846.00. The
contraband detection kits were transferred to the SCSU on
February 15.

3. On January 26, ExBS Office received 10 GR-135 neutron
identifiers. The units were ordered from CBP in 2004. The
user manual and the software that allows read-out and
management of the information on the computer are in
English. On January 30, a request was made to CBP to
arrange with the supplier for translation of the user
manual and the software. Once the translated software and
manuals are received the equipment will be transferred to
the Ministry of Environmental Protection of Ukraine,
Department for Ecological Control at the State Border.

4. On February 13, 1130 individual Gerber tool packs, which
were purchased by SAIC under a contract with ISN/ECC,
arrived in Kiev and were delivered to the SCSU warehouse.
The equipment was ordered based on the findings of the
assessments conducted by the ExBS Office in 2004/2005, and
will be deployed at the ports of entry along the Ukraine's
borders with Russia and Belarus. Total cost of equipment
is $59,890.00. On February 15, ExBS Advisor and the SCSU
representatives performed joint inventory of the tool kits
and signed the statement of transfer.

5. On February 13, two X-ray luggage-type units Rapiscan-
524 arrived to Kiev Regional Customs. These units were
supplied by SAIC under the contract with ISN/ECC. The X-
ray units have been installed at the International Boryspil
Airport, the main air gate to/from Ukraine.

D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE

1. On February 23, DoS Contracting Officer, Will Zehnder,
awarded contract No. SOUP300-06-M-0102 for supply of 334
computer workstations, to include a desktop computer, LCD
monitor, laser printer, and UPS, to the State Customs
Service of Ukraine. On February 28, Modification # 001 was
signed for 100 additional workstations. It is expected
that the equipment will be delivered to SCSU no later than
September 1, 2006. The cost of the 434 computer
workstations totaled $520,000.00. ExBS office is now
working on getting this project registered with the
Ministry of Economy of Ukraine to obtain VAT-exemption for
the equipment to be supplied.

2. On February 24, DoS Contracting Officer, Will Zehnder,
awarded contract No. SOUP300-06-M-0103 for supply of
computer equipment, to include desktop computers, server,
bar code reading and printing equipment, software, to the
State Service of Export Control of Ukraine (SSEC). It is
expected that the equipment will be delivered to SSEC no
later than June 30, 2006. The cost of the equipment is
$17,298.40. ExBS office is now working on getting this
project registered with the Ministry of Economy of Ukraine
to obtain VAT-exemption for the equipment to be supplied.
The equipment was purchase based on the request received
from the State Service of Export Control in November 2005.

3. In November, ExBS Advisor informed the State Service for
Export Control of Ukraine (SSEC) experts of a proposed
Administrative Enforcement Workshop developed by the U.S.
Department of Commerce. Following brief description of the
workshop ExBS Advisor provided materials of the course for
review by the SSEC experts and requested their comments and
decision as to applicability of the proposed course for the
SSEC enforcement staff. On December 06, ExBS office
received a letter from the SSEC in which they informed that
the proposed training would not be applicable for their
needs. Instead, they expressed interest in meeting with
their U.S. counterparts to discuss their practical
experience and existing challenges the U.S. experts face in
the administrative enforcement process. ExBS Office is
waiting for information form the U.S. Department of State
as to the possibility of completing SSEC's request.

4. On February 01, State Customs Service of Ukraine
notified ExBS Office about malfunctioning of the Linescan
207 Towcart unit deployed in Uzhgorod. The units were
supplied by DoS in August 2004, delivered to / deployed at
the ultimate locations in February 2005. Request for
repair was forwarded to DoS and company manufacturer L-3
Communications. On February 17, L-3 Communications
provided written guidance on how the problem can be fixed.
The information was forwarded to SCSU for action.

5. The U.S. Coast Guard's (USCG) Maritime Law Enforcement
Training, which includes Advanced Maritime Law Enforcement
Boarding Officer Course and Maritime Law Enforcement
Instructor Course, scheduled for June 13-July 1 was
postponed to allow for the addition of materials on export
controls. New dates will be determined once USCG completes
the ongoing revisions to the training materials.

E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS,
NONPROLIFERATION, OR RELATED BORDER SECURITY

None

HERBST

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